EM currencies set to strengthen – NN Investment Partners
Emerging market currencies are set to strengthen even further despite the significant appreciation from lows already seen this year, said NN Investment Partners.
Fixed Income
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Is the Fed creating opportunity or danger in US credit?
The split among the members of the Federal Open Market Committee about when to raise rates, as revealed by the meeting minutes, presents some fresh food for thought for investors.
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Investors in Barcelona swap duration risk for credit risk
Barcelona’s investors are remarkably unanimous in their fixed income allocation. Almost all of them are overweight short-duration bonds and eight in 10 interviewees are planning to decrease their allocation to long-duration European sovereign debt.
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Oil:US high yield correlation breaks down
The correlation between oil and US high yield markets broke down in July, indicative of a shift in the focus of the sector.
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High-yield bonds – on a rollercoaster ride
Not only fund flows are capricious when it comes to high-yield bonds. Investor sentiment towards the asset class also swings continuously, particularly on a country-by country- basis.
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Emerging market debt defies outflows trend
In June, emerging market bonds was the only asset class to see an improvement in fund flows from the previous month.
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HY bonds generate largest daily inflows ever
Bank of America Merrill Lynch data revealed 11 July was “the day when bears capitulated into risk assets” with investors flocking to high yield in droves.
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Fund buyers uncertain about macro outlook
European investors are more uncertain about their macroeconomic outlook than ever before. In a year’s time, the share of fund buyers with an uncertain macroeconomic outlook has doubled to 60% according to Expert Investor data.
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Blackrock expects more QE amid macro turmoil
The only certainty for Blackrock in today’s highly uncertain world is that central banks around the world will remain dovish. In Europe, they will even print more money.
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European investors resign themselves to diminishing bond returnse
A majority of investors in every European country expect a diversified bond portfolio to return less than 2% annually, over the next five years.
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Brexit disrupts ECB QE programme
ECB president Mario Draghi conspicuously avoided the B-word when he held a speech in Portugal last week. This may well be because he has yet to find an answer to the problems the vote has thrown up with regards to the execution of the central bank’s asset purchase programme.
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Why are high-yield bonds so volatile?
High-yield bond volatility has increased markedly over the past two years, which is partly a reflection of mounting macroeconomic uncertainty. But the unprecedented pace at which money is flowing in and out of the asset class suggests there is something more to it.